Tokyo Stocks Exchange
Here we see all the stats begin to drop off as market cap, age and numbers of companies are consistently smaller than those above it. Established in May, 1878, Tokyo Stocks Exchange which is the largest in Japan has more than 2,200 listed companies and a combined market capitalization of $3.8 by the end of December 2010. Among the major companies listed on Tokyo Stocks Exchange include; Toyota, Mitsubishi and Honda. At the height of the Japanese commodity bubble in 1989, the Nikkei 225 index stood at a staggering 38,957 while the Tokyo Stocks Exchange accounted for 60% of the stocks market capitalization in the world. Over the few decades, Japan struggled with the recessionary environment which saw the Nikkei plunge in value leading to a decline in the Tokyo Stocks Exchange combined market capitalization. The Tokyo Stocks Exchange acronym (TSE) should not be confused with Toronto Stocks Exchange whose acronym is (TSX). The Tokyo Stocks Exchange has adopted a dual market system where some of the securities are borrowed from the Japan Securities Finance Co.(JSF) and the rest on a bilateral credit basis. The Japan Securities Finance Co. is a publicly traded company that specializes in securities lending. Members of JSF can borrow securities while JSF acts as the central credit counterparty. The system at the Tokyo Stocks Exchange is akin to the system used at the NYSE and NASDAQ where banks and brokers can borrow from each other in the presence of a specific credit counterparty agreement.